Biyani's Think Tank

Concept based notes

Human Resource Management

MBA (II SEM)

Richa Khunteta

Surbhi Mathur Dept of MBA

Biyani Institute of Science & Management,

Jaipur

2

Published by :

Think Tanks

Biyani Group of Colleges

Concept & Copyright :

Biyani Shikshan Samiti Sector-3, Vidhyadhar Nagar, Jaipur-302 023 (Rajasthan) Ph : 0141-2338371, 2338591-95 Fax : 0141-2338007 E-mail : acad@biyanicolleges.org Website :www.gurukpo.com; www.biyanicolleges.org

First Edition : 2011

Leaser Type Setted by :

Biyani College Printing Department

While every effort is taken to avoid errors or omissions in this Publication, any mistake or

omission that may have crept in is not intentional. It may be taken note of that neither the

publisher nor the author will be responsible for any damage or loss of any kind arising to

anyone in any manner on account of such errors and omissions.

Human Resource Management 3

Preface

I am glad to present this book, especially designed to serve the needs of the students. The

book has been written keeping in mind the general weakness in understanding the fundamental

concepts of the topics. The book is self-explanatory and adopts the “Teach Yourself” style. It is

based on question-answer pattern. The language of book is quite easy and understandable based

on scientific approach.

Any further improvement in the contents of the book by making corrections, omission and

inclusion is keen to be achieved based on suggestions from the readers for which the author shall

be obliged.

I acknowledge special thanks to Mr. Rajeev Biyani, Chairman & Dr. Sanjay Biyani,

Director (Acad.) Biyani Group of Colleges, who are the backbones and main concept provider

and also have been constant source of motivation throughout this Endeavour. They played an

active role in coordinating the various stages of this Endeavour and spearheaded the pub lishing

work.

I look forward to receiving valuable suggestions from professors of various educational

institutions, other faculty members and students for improvement of the quality of the book. The

reader may feel free to send in their comments and suggestions to the under mentioned address.

Author

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Contents

S.No Title of Chapter

1 Human Resource Management: An Introduction

and Scope

2 Job Design and Job Analysis

3 Training and Development

4 Performance Measurement and Performance

Appraisal

5 Leadership and Grievance

6 Discipline

7 Employee Compensation

8 Key Terms & Terminologies

Human Resource Management 5

Annexure

1. Bibliography - 67

2. Solved question papers - 68 - 82

3. Multiple Choice Questions - 83 - 85

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Syllabus

Objectives:

To become a successful manager of people, students need to understand behavior of human

resources in various organizational situations. In a complex world of industry and business,

organizational efficiency is largely dependent on the contribution made by the human resources

of the organization. The objective of this course is to sensitize students to various facts of

managing people and to create an understanding of the various policies and practices of human

resource management.

Section A

Human Resource Management-. Introduction and Scope, HRD-Concept, Need, Human Resource Planning-Concept, Process, job design-Concept approaches, job analysis, job description, job

specification. Human Resource Procurement-Recruitment. Selection and induction.

Training, Training phases, Need Assessment, Establishment, Establishment of Training objectives, Training method Lecture, case method, Role playing. Business in Basket T- Group, Incident, Syndicate, Evaluation of a training Programme. Performance measurement and reward

systems-introduction, performance drivers, leadership and performance, reward management performance appraisals. Discipline. The grievance procedure.

Employee compensation-purpose and importance, components. non monetary rewards, workers

participation in Management Employee. Strategic challenges for leadership, career management,

SHRM Mergers and acquisitions..

Section B

Case and Problems

Dean, Rajasthan Technical University, Kota/ 2008-2009/Prof. Surendra Kumar Vyas, Chairman

BoS, Department of Management & Technology, Engineering College, Bikaner.

Human Resource Management 7

Chapter 1

Human Resource Management: An Introduction and

Scope

Q.1 What is Human Resource Management?

Ans. Human Resource Management (HRM) is the process of managing people in organizations

in a structured and thorough manner. This covers the fields of staffing (hiring people), retention of people, pay and perks setting and management, performance management, change management and taking care of exits from the company.

Importance of Human Factor: 1.Output will be greater than the input

2.Each individual is different from culture, education, environment, background etc

3. We can‟t purchase the loyalty, dedication, devotion towards the organization.

4.Time passes human factor can bring experience to organization to accept the challenges

5. Recent developments like legislation, trade unions enhanced their importance. Apart from above factors there are certain other factors that one should consider in the management of human

resource such as:

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Q .2 Explain the difference between Personnel Management and HRM?

Ans.

Dimensions Personnel Management HRM

Beliefs and assumptions

1. Contract Careful delineation of written contracts

Aim to go beyond contract

2. Rules Importance of devising clear rules/mutually

'Can-do' outlook; Impatience with 'rule'

3. Guide to management action

Procedures Business-need'

4. Behavior referent Norms/custom and practice

Values/mission

6. Nature of relations Pluralist Unitarist

Strategic aspects

Human Resource Management 9

8. Key relations Labor management Customer

9. Initiatives Piecemeal Integrated

11. Speed of decision Slow Fast

Line management

12. Management role Transactional Transformational leadership

13. Key managers Personnel/ IR

specialists

General/business/line

managers

14. Communication Indirect Direct

16. Management skills Negotiation Facilitation

Key levers

17. Selection Separate, marginal task Integrated, key task

18. Pay Job evaluation (fixed grades)

Performance-related

19. Conditions Separately negotiated Harmonization

21. Thrust of relations with stewards

Regularized through facilities and training

Marginalized (with exception of some bargaining for change

models)

22. Job categories and

grades

Many Few

23. Communication Restricted flow Increased flow

24. Job design Division of labor Teamwork

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Q. 3 Discuss the nature and scope of HRM?

Ans. 1. Organizations are the people who manage.

2. HRM involves acquisitioning, developing, maintaining

3. Decisions relating to employees must be integrated.

4. Decisions made must influence the effectiveness of an organization.

5. HRM functions are confirmed to Non-business organization also.

Scope of HRM

HRM

Industrial

Relation

Maintenance

Prospects

Nature of

HRM Employee

Hiring

Remun

eration

Motivation

Human Resource Management 11

Q. 4 What is the significance of Human Resource Development(HRD)?

Ans. Human resource development (HRD) is an essential component for growth and economic

development. It can occur at both the nationwide level and the firm-wide level.

The need & importance of HRD can be measured from the following points:

Growth of organization: Growth of organization is associated with the development of its

workforce. In changing situation HRD must be viewed as the total system interrelated and interacting with other systems at work: production, finance, and marketing.

Development of work culture : The need of HRD is felt as it improves the efficiency of employees, checks monotony at work, better communication, development of mutual

cooperation and creativity of all the members comes into limelight.

Developing potentialities: The focus of HRD manager essentially is on enabling people to self-actualize through a systematic approach by which their existing talents are further

developed.

Growth of employees: HRD is associated with growth of employees. It helps employees to know their strengths and weaknesses and enable them to improve their performance. The management should provide adequate opportunity for the development of human resource

management for the development of their talents so that their development will benefits the organizational growth.

Country Develops if The Human Resource is Developed: To enhance economic development the state constructs roads, buildings bridges, dams, power houses, hospitals, etc. to run these units doctors, engineers, scientist, teachers, are required. So if the state invests in a human resource it pays dividend in response.

Entrepreneurship Increase: Education, clean environment, good health, investment on the human resource, will all have its positive effects. Job opportunities would be created in the country. And even business environment will flourish in the state which creates many job opportunities.

Q.5 What is Human Resources planning and also explain its components?

Ans. E.W Vetter viewed human resources planning as “a process by which an organization should move

from its current manpower position to its desired manpower position. Through planning management

strives to have the right number and right kind of people at the right places at the right time, doing things

which result in both the organization and the individual receiving maximum long-run benefit”.

According to Leon C Megginson human resources planning is an integrated approach to performing the

planning aspects of the personnel function in order to have a sufficient supply of adequately developed

and motivated people to perform the duties and tasks required to meet organizational objectives and

satisfy the individual needs and goals of organizational members.

Components of Human Resource Planning comprises:

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Estimating Manpower Requirement

Workload analysis

Workforce analysis

Absenteeism Labor turnover

Recruitment & Selection

Induction & development

Personnel Development

Ensuring quality to products & services

Overall assessment & performance & fine- tuning

Q.6 Discuss the process of Human Resource Planning .

1. Analyzing the Corporate Level Strategies : – Human Resource Planning should start with analyzing

corporate level strategies which include expansion, diversification, mergers, acquisitions,

reduction in operations, technology to be used, method of production etc. Therefore Human

Resource Planning should begin with analyzing the corporate plans of the organization before

setting out on fulfilling its tasks.

2. Demand forecasting: – Forecasting the overall human resource requirement in accordance with the

organizational plans is one of the key aspects of demand forecasting. Forecasting of quality of

human resources like skills, knowledge, values and capabilities needed in addition to quantity of

human resources is done through the following methods: -

a. Executive or Managerial Judgment: – Here the managers decide the number of employees in

the future. They adopt one of the three approaches mentioned below: -

o Bottom-Up approach: – Here the concerned supervisors send their proposals to the top

officials who compare these with the organizational plans, make necessary adjustments and

finalize them.

o Top-Down approach: – Here the management prepares the requirements and sends the

information downwards to the supervisory –level who finalizes the draft and approves it.

o Participative Approach: – Here the supervisors and the management sit together and

projections are made after joint consultations.

The chief drawback of these methods is that estimation of manpower is made using guesswork.

b. Statistical Techniques: – These methods use statistical methods and mathematical techniques

to forecast and predict the supply and demand of Human Resources in the future.

Human Resource Management 13

c. Ratio-Trend analysis: – In this method depending on the past data regarding number of

employees in each department, like production department, sales department, marketing

department and workload level, etc ratios for manpower are estimated. Past values are plotted and

extrapolated to get fairly accurate future projections.

d. Work Study method: – This technique is suitable to study the correlation between volume of

work and labor i.e. demand for human resources is estimated based on the workload. Work study

method is more appropriate for repetitive and manual jobs when it is possible to measure work

and set standards.

e. Delphi Technique: – „Delphi’ Technique is named after the Greek Oracle at the city of Delphi.

In this method, the views of different experts related to the industry are taken into consideration

and then a consensus about the Human Resource requirement is arrived at. Delphi technique is

used primarily to assess long-term needs of human resource.

3. Analyzing Human Resource Supply: – Every organization has two sources of supply of Human

Resources: Internal & External. Internally, human resources can be obtained for certain posts

through promotions and transfers. In order to judge the internal supply of human resources in

future human resource inventory or human resource audit is necessary. Human resource inventory

helps in determining and evaluating the quantity of internal human resources available. Once the

future internal supply is estimated, supply of external human resources is analyzed.

4. Estimating manpower gaps : – Manpower gaps can be identified by comparing demand and

supply forecasts. Such comparison will reveal either deficit or surplus of Human Resources in the

future. Deficit suggests the number of persons to be recruited from outside, whereas surplus

implies redundant employees to be re-deployed or terminated. Employees estimated to be

deficient can be trained while employees with higher, better skills may be given more enriched

jobs.

5. Action Planning: – Once the manpower gaps are identified, plans are prepared to bridge these

gaps. Plans to meet the surplus manpower may be redeployment in other departments and

retrenchment. People may be persuaded to quit voluntarily through a golden handshake. Deficit

can be met through recruitment, selection, transfer and promotion. In view of shortage of certain

skilled employees, the organization has to take care not only of recruitment but also retention of

existing employees. Hence, the organization has to plan for retaining of existing employees.

6. Modify the Organizational plans : – If future supply of human resources form all the external

sources is estimated to be inadequate or less than the requirement, the manpower planner has to

suggest to the management regarding the alterations or modifications in the organizational plans.

7. Controlling and Review: – After the action plans are implemented, human resource structure and

the processes should be controlled and reviewed with a view to keep them in accordance with

action plans.

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CASE STUDY: How FCO Meet Business Needs through Human Resource Planning

The staffing needs of an organization change constantly. Without proper planning, an organization may suffer from skills shortages. It may be unable to provide a good service because it does not have sufficient staff with the right experience. Workforce planning involves estimating the present and future staffing requirements of the organization. It needs to take into account that:

existing employees may retire, resign or get promoted new technology may change working methods and require different skill sets More staff (or staff with different skills) may be needed to fulfill new business or operational

requirements. The process helps the FCO to identify what skills it needs to deliver its strategic objectives. It helps it

assess the skills available within the existing workforce and see where there might be gaps in the future.

Workforce planning involves thinking ahead to fit individuals with the right skills into different parts of

the organization.

The FCO has to undertake this planning in the context of the current political and economic environment.

Workforce planning can be a challenge. As an organization with operations in countries across the world,

the FCO has to ensure balanced workloads for employees both within the UK and overseas. It faces the

challenge of rotating staff between different overseas postings.

Human Resource Management 15

Chapter 2

Job Design and Job Analysis

Q.1 What is JOB ANALYSIS?

Ans. Job Analysis is the formal process of identifying the content of a job in terms activit ies involved and

attributes needed to perform the work and identifies major job requirements. In other words it means:

The procedure for determining the duties and skill requirements of a job and the kind of person

who should be hired for it.

The process of job analysis results in two set of data:

i. Job description-A list of job‟s duties, responsibilities, reporting relationships, working

environment and supervisory responsibility.

ii. Job specification-A list of job‟s “human requirements,” that is requisite education, skills,

personality and so on.

Q. 2 What is Job description?

Ans. A job description should include the following:

Job Title: Clarifies the position, rank or level (if applicable).

Job location: It includes the physical location of the job, the days and hours of the position, and

includes any potential overtime that may be required to perform the job.

Goals and Objectives: it includes goals and objectives the incumbents should be accomplishing in

its job.

Position Reports To :It includes those persons who the employee should report to i.e. the boss of

the job holder

Immediate level subordinates: A job description also includes the subordinates of the job holder.

Machines, tools and equipments used: It includes those machines and tools which will be used by

the job holder in order to perform his duties.

Key Responsibilities: The key responsibilities section of your job description should give clear

and unambiguous detail of the main tasks that your employee is accountable and responsible for.

Core Skills: The core skills section of a job description are those minimum skills and experience that the incumbent will need to perform the job in a professional and responsible manner for your

business.

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Authority limits: The employee should know his authority limits. He shouldn‟t go beyond his

authority limits.

Working environment: It includes the kind of environment in which the job holder will work.

Hazards : The hazards involved in performing the job is also included in it

Q.3 What is Job specification?

Ans. It includes the following:

Quantitative factors:

• Age, sex, education, professional qualification,

• Experience

• Special qualification: languages, marital status, vehicle ownership, achievement in other fields

• Intelligence

Character traits:

Stability, industrious, loyalty, self reliance, leadership.

Job motivation:

Money, security, status, power, perfection, competitiveness, service, recognition.

Degree of emotional immaturity:

• Incapacity of self dependence

• Disregard of consequences

• Selfishness

• Pleasure mindedness

• Unwillingness to accept responsibility

Q.4 Explain the types of information to be collected by job analysis?

Ans.

Work activities: Information is usually collected on the actual work activities such as cleaning, selling, teaching or painting. Such a list may also indicate how, why, and when the worker

performs each activity.

Human behaviors : Information on human being like sensing, communication, decision making

and writing may also be collected

Human Resource Management 17

Machines, tools ,equipment and work aids used:

• Computers (hardware and software)

• Safety equipment(goggles and gloves)

• Office tools (phones, fax and books)

Types of information to be collected by job analysis:

Work Performance :

• Work measurements(i.e. time taken)

• Work standard

• Error analysis

Job context:

• Physical working conditions

• Work schedule

• Organized context

• Social context

• Incentives (financial and non financial)

Personal requirements:

• Job related knowledge or skills(such as education, training or work experience required)

• Personal attributes(such as aptitudes, physical characteristics, personality, interests required)

Job analysis and competitive advantage

Laying the foundation for human resource planning.

Laying the foundation for employee hiring.

Laying the foundation for training and development.

Laying the foundation for performance appraisal.

Laying the foundation for salary and wage fixation

Laying the foundation for safety and wealth

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Q.5 Explain the process of job analysis?

Ans.

Human Resource Management 19

Q. 6 What are the methods for collecting job data?

Ans.

Observation: In this method, the job analyst carefully observes the job holder at work and records what he or she does, how he or she does, and how much time is needed for completion of

a given task.

Interview: In this, the analyst interviews the job holder and his/her supervisor to elicit

information about the job

Questionnaire: Job holder fills in the given structured questionnaires, which are then approved

by their supervisors. The filled in questionnaires offer enough data on jobs

Checklists: checklist is similar to a questionnaire, but the response sheet contains fewer

subjective judgments and tends to be either-yes-or-no variety.

Technical Conference Method: In this method, the details of job are obtained by the supervisors

who possess extensive knowledge about a job.

Diary Method: In this method, the job holders are required to record in detail their activities of

each day.

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QUANTITATIVE TECHNIQUES

Position Analysis Questionnaire(PAQ): The PAQ itself is filled by a job analyst, a person who

should already be acquainted with a particular job to be analyzed.

Department of labor(DOL) procedure: Standardized method for rating, classifying and

comparing virtually every kind of job based on data, people and things.

Functional job analysis: A method for classifying job similar to the DOL analysis but additionally taking into account the extent to which instructions, reasoning, judgment and verbal

facility are necessary for performing job tasks.

Q. 7 What is Job Analysis and Total Quality Management (TQM)?

Ans. The essential features of TQM are as follows:

1. Creation of common company theme;

2. Creation of a customer centric mentality;

3. Improvement becoming part of the job ;

4. Each function reassess its purpose;

5. Improvement becoming a continuous process;

6. Communications to improve; and

7. Bureaucracy to be reduced.

Q.8 What is Job design & also discuss the factors affecting job design.

Ans. Job design follows job analysis. Job analysis provides job related data as well as the skills and knowledge expected of the incumbent to discharge the job. Job design, then involves conscious effort to

organize tasks, duties and responsibilities into a unit of work to achieve certain objectives.

Human Resource Management 21

CASE STUDY: Job Analysis

You are an HR Manager at a telecommunication company. You are given a responsibility to

design jobs and to redesign job titles so that work is performed efficiently. You have some human

resource specialists. You plan to design jobs and titles from three different perspectives: the entire

organization, work groups and individual employees. You decided to examine each of these

perspectives and their implications for human resource management. A group of managers

requested you to allow them to use people-focused job titles and to design such titles which

reflect the breaking down of hierarchies and people barriers. Some examples of the titles that they

have proposed include “welfare leader”, “people developer”, “career promoter”, “employee

relations specialist” etc. they also suggested that companies should use generic job titles in order

to minimize the differences between employees that arise due to differences in rank, states,

experience and salary levels. You decided to discuss this proposal with your team members and

HR specialists.

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Chapter 3

Training and Development

Q.1 What is training? Explain the Role of training.

Ans The term training refers to the acquisition of knowledge, skills, and competencies as a result of

the teaching of vocational or practical skills and knowledge that relate to specific useful

competencies.

To make proficient with specialized instruction and practice. Meaning:

It is a learning process that involves the acquisition of knowledge, sharpening of skills, concepts,

rules, or changing of attitudes and behaviors to enhance the performance of employees.

Training is activity leading to skilled behavior.

* It‟s not what you want in life, but it knows how to reach it.

* It‟s not where you want to go, but it knows how to get there.

* It‟s not how high you want to rise, but it knows how to take off.

* It may not be quite the outcome you were aiming for, but it will be an outcome.

* It‟s not what you dream of doing, but it‟s having the knowledge to do it

* It‟s not a set of goals, but it‟s more like a vision

* It‟s not the goal you set, but it‟s what you need to achieve it

Training is about knowing where you stand (no matter how good or bad the current situation

looks) at present, and where you will be after some point of time.

Training is about the acquisition of knowledge, skills, and abilities (KSA) through professional

development.

Q .2 Explain the concept of training and development with reference to its objectives?

Ans TRAINING AND DEVELOPMENT is a subsystem of an organization. It ensures that

randomness is reduced and learning or behavioral change takes place in structured format.

TRADITIONAL AND MODERN APPROACH OF TRAINING AND DEVLOPMENT

Human Resource Management 23

Traditional Approach – Most of the organizations before never used to believe in training. They

were holding the traditional view that managers are born and not made. There were also some

views that training is a very costly affair and not worth. Organizations used to believe more in

executive pinching. But now the scenario seems to be changing.

The modern approach of training and development is that Indian Organizations have realized

the importance of corporate training. Training is now considered as more of retention tool than a

cost. The training system in Indian Industry has been changed to create a smarter workforce and

yield the best results

TRAINING AND DEVELOPMENT OBJECTIVES

The principal objective of training and development division is to make sure the availability of a

skilled and willing workforce to an organization. In addition to that, there are four other

objectives: Individual, Organizational, Functional, and Societal.

Individual Objectives – help employees in achieving their personal goals, which in turn,

enhances the individual contribution to an organization.

Organizational Objectives – assist the organization with its primary objective by bringing

individual effectiveness.

Functional Objectives – maintain the department‟s contribution at a level suitable to the

organization‟s needs.

Societal Objectives – ensure that an organization is ethically and socially responsible to the

needs and challenges of the society.

Q.3 What you understand by training need assessment? How do you analysis need of training?

Ans.A “training needs assessment”, or “training needs analysis”, is the systematic method of

determining if a training need exists and if it does, what training is required to fill the gap

between the standard and the actual performance of the employee. Therefore, training needs

analysis is:

Systematic method of determining performance discrepancies

causes of performance discrepancies Reasons to conduct training needs analysis Identify the deficiencies

Determine whether employees lack KSAs Benchmark for evaluation of training

makes sure training is provided to the right people Increases the motivation of training

Training needs = Job and organizational requirements –

Employee Specifications

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Training needs can be identified through identifying the organizational needs based on:

1. Organizational Analysis: This includes analysis of objectives, resource utilization, environments canning and

organizational climate. Organizational strengths and weakness in different areas like

accidents, excessive scrap, frequent breakage of machinery ,excessive labor turnover ,market

share, and other marketing areas ,quality and quantity of the output ,production schedule

,raw materials and other production areas, personnel, finance , etc

2. Department Analysis :

Department strength and weakness including special problems of the department or a

common problem of a group of employees like acquiring skills and knowledge in operating

computer by accounting personnel . .

3. Job Role Analysis: This includes study of jobs/roles, design of jobs due to changes, job

enlargement and job enrichment etc.

4. Manpower Analysis: Individual strengths and weakness in the areas of job knowledge, skills etc…

Q.4 How training plays an important role in organization?

Ans. Importance of Training is:

Optimum Utilization of Human Resources – Training and Development helps in optimizing the utilization of human resource that further helps the employee to achieve

the organizational goals as well as their individual goals.

Development of Human Resources – Training and Development helps to provide an

opportunity and broad structure for the development of human resources‟ technical and behavioral skills in an organization. It also helps the employees in attaining personal growth.

Development of skills of employees – Training and Development helps in increasing the job knowledge and skills of employees at each level. It helps to expand the horizons

human intellect and an overall personality of the employees.

Productivity – Training and Development helps in increasing the productivity of the

employees that helps the organization further to achieve its long-term goal

Individual Training

Needs

Group Training Needs Organizational

Training Needs

Human Resource Management 25

Team spirit – Training and Development helps in inculcating the sense of team work, team spirit, and inter-team collaborations. It helps in inculcating the zeal to learn within

the employees

Organization Culture – Training and Development helps to develop and improve the

organizational health culture and effectiveness. It helps in creating the learning culture within the organization

Organization Climate – Training and Development helps building the positive perception and feeling about the organization. The employees get these feelings from leaders, subordinates, and peers.

Quality – Training and Development helps in improving upon the quality of work and work- life.

Healthy work-environment – Training and Development helps in creating the healthy working environment. It helps to build good employee, relationship so that individual

goals aligns with organizational goal.

Health and Safety – Training and Development helps in improving the health and safety

of the organization thus preventing obsolescence.

Morale – Training and Development helps in improving the morale of the work force.

Image – Training and Development helps in creating a better corporate image.

Profitability – Training and Development leads to improved profitability and more

positive attitudes towards profit orientation.

Training and Development aids in organizational development i.e. Organization gets

more effective decision making and problem solving. It helps in understanding and carrying out organizational policies.

Training and Development helps in developing leadership skills, motivation, loyalty, better attitudes, and other aspects that successful workers and managers usually display.

Q.5 What are training methods?

Ans There are two methods of training which are as:

1. On the job methods

2. Off the job methods

I. ON THE JOB METHODS (OJT): -

1. On the Job Training:

It is the responsibility of supervisors and managers to utilize available resources to train, qualify,

and develop their employees. On-the-job training (OJT) is one of the best training methods because it is planned, organized, and conducted at the employee's worksite. OJT will generally be the primary method used for broadening employee skills and increasing productivity. It is

particularly appropriate for developing proficiency skills unique to an employee's job - especially

26

jobs that are relatively easy to learn and require locally-owned equipment and facilities. Morale, productivity, and professionalism will normally be high in those organizations that employ a

sound OJT program. An analysis of the major job requirements (identified in the position description and performance plan) and rela ted knowledge‟s, skills, and abilities form the basis

for setting up an OJT plan. To be most effective, an OJT plan should include:

The subject to be covered; Number of hours; Estimated completion date; and

Method by which the training will be evaluated

To have a successful OJT program, supervisors need to assign a coach to each employee involved in OJT. It is the responsibility of the coach to plan training carefully and conduct it

effectively. Various on the job training method include:

I. Job Instruction Training (JIT):

Job Instruction Training (JIT) is a logical outgrowth of Job Hazard Analysis. It is a proven

technique for teaching new skills and safe, healthful work habits faster and more effectively. All

new employees and those transferred to new jobs should receive JIT. One of the first steps is

trainer selection – preferably a supervisor or a skilled person within the department.

Regardless of who is selected, the trainer should:

■ Know the job in question thoroughly

■ Have leadership skills

■ Have a desire to teach others

■ Be friendly and cooperative

■ Have a professional attitude toward the job and other employees

II.Vestibule Training (Training Centre):

In the early 1800s, factory schools were created, due to the industrial revolution, in which workers were trained in classrooms within the factory walls. The apprentice system was

inadequate due to the number of learners that had to be trained as the machines of the Industrial Revolution increased the ability of the factory to produce goods. The factory owners needed trained workers quickly because there was a large demand for the produced goods.

Towards the end of the 1800s, a method that combined the benefits of the classroom with the

benefits of on-the-job training, called vestibule training, became a popular form of training. The classroom was located as close as conditions allowed to the department for which the workers

Human Resource Management 27

were being trained. It was furnished with the same machines as used in production. There were normally six to ten workers per trainer, who were skilled workers or supervisors from the

company.

III.Simulation Training :

Technical companies that are required to train employees on dangerous or expensive equipment are most likely to benefit from simulation-based training. Simulations allow the user to observe

the impact of their choices without the outcomes having any impact on the real operation. Trainees can learn how to respond to emergencies, how individual act ions and decisions affect entire processes, and how to operate complex pieces of equipment.

Eg:

Figure 1. Simulated Airplane cockpit.

The airplane cockpit simulation takes on a new approach to simulation training. The user has the

opportunity to observe how all the components of the cockpit work together. This approach allows the user to gain a perspective of the interactions and correlations between the numerous components contained in an airplane cockpit.

Eg:

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1. Demonstration and examples :

This method is a visual display of how something works or how to do something. As an

example, trainer shows the trainees how to perform or how to do the tasks of the job. In order to

be more effective, demonstration method should be should be accompanied by the discussion or

lecture method.

To carry out an effective demonstration, a trainer first prepares the lesson plan by breaking the

task to be performed into smaller modules, easily learned parts. Then, the trainer sequentially

organizes those modules and prepares an explanation for why that part is required. While

performing the demonstration, trainer.

Demonstrates the task by describing how to do, while doing.

Helps the focusing their attention on critical aspects of the task.

Tells the trainees what you will be doing so they understand what you will be showing them.

Explains why it should be carried out in that way.

The difference between the lecture method and the demonstration method is the level of

involvement of the trainee. In the lecture method, the more the trainee is involved, the more

learning will occur.

The financial costs that occur in the demonstration method are as follows:

Cost of training facility for the program

Cost of materials that facilitate training

Food, travel, lodging for the trainees and the trainers

Compensation of time spent in training to trainers and trainees

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Cost related to creating content, material

Cost related to the organization of the training

After completing the demonstration the trainer provide feedback, both positive and or

negative, give the trainee the opportunity to do the task and describe what he is doing and

why.

2. Apprenticeship :

A major part of training time is spent on the on the job productive work. Each apprenticeship

is given a programme of assignments according to predetermined schedules which provides

for efficient training in trade skills. This method is appropriate for training in crafts, trades,

and technical areas, especially when proficiency in a job is the result of a relatively long

training or apprenticeship period, e.g.; job of a crafts man, a printer, a tool maker, and a

mechanic. Etc.

2. OFF THE JOB METHODS:

1. Lecturers (or class room instructions) :

Lectures are regarding as one of the simplest ways of imparting knowledge to the trainees,

especially when facts, or principles, attitudes, theories and problem solving abilities are to be

taught. Lectures are formal organized talks by the training specialist, the formal superior or

other individual specific topics.

The lecture method can be used for very large groups which are to be trained within a short

time, thus reducing the cost per trainee. Lectures are essential when it is a question of

imparting technical or special information of a complex nature.

2. Conference Method:

The conference training method is a good problem-solving approach. A group considers a specific problem or issue and they work to reach agreement on statements or solutions.

Pros: There is a lot of trainee participation. The trainees build consensus and the trainer can use several methods (lecture, panel, and seminar) to keep sessions interesting.

Cons: It can be difficult to control a group. Opinions generated at the conference may differ

from the manager‟s ideas, causing conflict.

3. Seminar :

Seminars often combine several group methods: lectures, discussions, conferences, demonstrations.

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Pros: Group members are involved in the training. The trainer can use many group methods as part of the seminar activity.

Cons: Planning is time-consuming. The trainer must have skill in conducting a seminar. More

time is needed to conduct a seminar than is needed for many other methods

4. Role Playing

During a role play, the trainees assume roles and act out situations connected to the learning concepts. It is good for customer service and sales training.

Pros: Trainees can learn possible results of certain behaviors in a classroom situation. They

get an opportunity to practice people skills. It is possible to experiment with many different approaches to a situation without alienating any actual customers.

Cons: A lot of time is spent making a single point. Trainers must be skilled and creative in

helping the class learn from the situation. In some role play situations, only a few people get to practice while others watch.

5. T Group:

T- Group Training is a technique of off the job training methods. It is a group experience

designed to provide maximum opportunity for the individuals to expose their behavior, give and

take feedback and experience new behavior and develop awareness about self and others. The t-

group training is also known as several names such as sensitivity training, action training, human

capacity movement, group dynamics, and awareness expertise and as forth.

This training involves development techniques to attempt to increase or improve human

sensitivity and awareness. The goal of this training is to helping trainees to improve and

participate in human affairs. The T-group training enables trainee to understand themselves and

others, changed their attitude towards self, others and groups role, increase their interpersonal

skills and provide organizational improvement as groups rather than individuals.

In this training, the numbers of trainees should be limited to 10 to 15 persons so that regular

interaction could happen throughout the training programme. Usually there is no leader, no

planned agenda and stated goal. The trainees can be given any assignment like case study, role

play etc that leads the group interaction. The participants would be encouraged to be thoughtful

and understanding towards the feeling of others. The trainees should feel secure to express their

personal feeling and reactions to what happening in the group and understand the others behavior

and feelings. The emphasis is on face to face interaction.

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Merits of T-group training

1. The trainee learn more about themselves, specially their weakness and emotions

2. They understand that how they react to others and how others react to them

3. They discover how the groups work and identify human relation problems

4. Find out how to behave more effectively in inter-personal relationship and manage

people through means rather than power.

5. Developed more capable and genuine relations in which feelings are expressed openly.

6. Confront interpersonal problems directly to find out solution instead of avoiding them.

After training, trainees usually become more sensitive to others and open. Such training can also

result in improved performance and increased company‟s profit.

The demerits T-group training

1. During the training, the trainer often create stressful situation. In such situation, the training

may do a job of tearing apart people instead of bringing them together.

2. The changes trainees acquire during the training are tend to face out when trainee returns to c

insensitive environment of workplace.

3. This training may make the management trainee as sensitive towards others that they become

unwilling to take necessary hard decisions.

4. T group training proved less effective when it is applied ob technical professional.

5. Such training may make people frustrated and upset as many stressful situations are created

during this technique.

Some basic points to implement the T group training:

1. T-group training is more suitable for develop “organic” Organization. If such openness and

flexible organizational structure is not available, this training is not appropriate.

2. The participants should be selected on the basis of their emotional stability and anxiety

tolerance

3. The participation should be strictly voluntary

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4. The trainees should know in advance that what sort of training they are going to receive

5. The transfer of learning back to the Organization should be ensured.

6. In-Basket Method:

In-Basket Technique – It provides trainees with a log of written text or information and requests,

such as memos, messages, and reports, which would be handled by manger, engineer, reporting

officer &administrator.

Procedure of the In-basket Technique:

In this technique, trainee is given some information about the role to be played such as, description, responsibilities, general context about the role. The trainee is then given the log of materials that make up the in-basket and asked to respond

to materials within a particular time period.

After all the trainees complete in-basket, a discussion with the trainer takes place.

In this discussion the trainee describes the justification for the decisions. The trainer then provides feedback, reinforcing decisions made suitably or encouraging the

trainee to increase alternatives for those made unsuitably.

A variation on the technique is to run multiple, simultaneous in-baskets in which each trainee receives a different but organized set of information. It is important that trainees must communicate with each other to accumulate the entire information required to make a suitable

decision. This technique focuses on:

Building decision making skills

Assess and develops Knowledge, Skills and Attitudes (KSAs)

Develops of communication and interpersonal skills

Develops procedural knowledge

Develops strategic knowledge

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7. Incident Method:

This method was developed by Paul Pigors. It aims to develop the trainee in the areas of

intellectual ability, practical judgment and social awareness. Under this method each employee developed in a group process .Incidents are prepared on the basis of actual situations which happened in different organizations. Each Employee in the training

group is asked to study the incident and to make short term decisions in the role of a person who has to cope with the incident in the actual situation. Later, the group studies

and discusses the incident and takes decisions relating to incident, based on the group interaction and decisions taken by each member . Thus, this method is similar to a combination of case method and in basket method.

8. Syndicate Method:

Syndicate is a group of individuals or organizations combined or making a joint effort to undertake some specific duty or carry out specific transactions or negotiations. It is not actually one group that constitutes the components of syndicate method.

This method is suitable for learning at a higher level. Therefore, this method was

experimented, found useful and widely used in teaching- learning situations, especially in top level management training.

Q. 6 Is training Evaluation is important? Explain.

Ans. EVALUATION OF A TRAINING PROGRAMME

Vital aspect of any sort of evaluation is its effect on the person being evaluated.

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Feedback is essential for people to know how they are progressing, and also, evaluation is crucial

to the learner's confidence too.

And since people's commitment to learning relies so heavily on confidence and a belief that the

learning is achievable, the way that tests and assessments are designed and managed, and results

presented back to the learners, is a very important part of the learning and development process.

People can be switched off the whole idea of learning and development very quickly if they

receive only negative critical test results and feedback. Always look for positives in negative

results. Encourage and support - don't criticize without adding some positives, and certainly

never focus on failure, or that's just what you'll produce.

This is a much overlooked factor in all sorts of evaluation and testing, and since this element is

not typically included within evaluation and assessment tools the points is emphasised point loud

and clear here.

So always remember - evaluation is not just for the trainer or teacher or Organization or policy-

makers - evaluation is absolutely vital for the learner too, which is perhaps the most important

reason of all for evaluating people properly, fairly, and with as much encouragement as the

situation allows.

Training Evaluation

The process of examining a training program is called training evaluation. Training evaluation checks whether training has had the desired effect. Training evaluation ensures that whether candidates are able to implement their learning in their respective workplaces, or to the regular

work routines.

Purposes of Training Evaluation The five main purposes of training evaluation are:

Feedback: It helps in giving feedback to the candidates by defining the objectives and linking it

to learning outcomes. Research: It helps in ascertaining the relationship between acquired knowledge, transfer of

knowledge at the work place, and training

Control: It helps in controlling the training program because if the training is not effective, then it can be dealt with accordingly.

Power games: At times, the top management (higher authoritative employee) uses the evaluative data to manipulate it for their own benefits.

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Intervention: It helps in determining that whether the actual outcomes are aligned with the

expected outcomes.

Process of Training Evaluation

Before Training: The learner‟s skills and knowledge are assessed before the training

program. During the start of training, candidates generally perceive it as a waste of resources

because at most of the times candidates are unaware of the objectives and learning outcomes

of the program. Once aware, they are asked to give their opinions on the methods used and

whether those methods confirm to the candidates preferences and learning style

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During Training: It is the phase at which instruction is started. This phase usually consist of

short tests at regular intervals

After Training: It is the phase when learner‟s skills and knowledge are assessed again to

measure the effectiveness of the training. This phase is designed to determine whether

training has had the desired effect at individual department and organizational levels. There

are various evaluation techniques for this phase.

Techniques of Evaluation

The various methods of training evaluation are:

1. Observation

2. Questionnaire 3. Interview

4. Self diaries 5. Self recording of specific incidents

Case Study: Nestle Training & Development

Introduction

Nestlé is today the world‟s leading food company, with a 135-year history and operations in

virtually every country in the world. Nestlé‟s principal assets are not office buildings, factories, or even brands. Rather, it is the fact that they are a global organization comprised of many nationalities, religions, and ethnic backgrounds all working together in one single unifying

corporate culture.

Training Programs at Nestlé

The willingness to learn is therefore an essential condition to be employed by Nestlé. First and foremost, training is done on-the-job. Guiding and coaching is part of the responsibility of each

manager and is crucial to make each one progress in his/her position. Formal training programs are generally purpose-oriented and designed to improve relevant skills and competencies.

Therefore they are proposed in the framework of individual development programs and not as a reward.

Literacy Training

Most of Nestlé‟s people development programs assume a good basic education on the part of

employees. However, in a number of countries, we have decided to offer employees the opportunity to upgrade their essential literacy skills. A number of Nestlé companies have

Human Resource Management 37

therefore set up special programs for those who, for one reason or another, missed a large part of their elementary schooling.

International Training

Nestlé‟s success in growing local companies in each country has been highly influenced by the

functioning of its international Training Centre, located near our company‟s corporate headquarters in Switzerland. For over 30 years, the Rive-Reine International Training Centre has

brought together managers from around the world to learn from senior Nestlé managers and from each other.

Conclusion

Nestlé‟s overarching principle is that each employee should have the opportunity to develop to

the maximum of his or her potential. Nestlé do this because they believe it pays off in the long run in their business results, and that sustainable long-term relationships with highly competent people and with the communities where they operate enhance their ability to make consistent

profits. It is important to give people the opportunities for life- long learning as at Nestle that all employees are called upon to upgrade their skills in a fast-changing world. By offering

opportunities to develop, they not only enrich themselves as a company, they also make themselves individually more autonomous, confident, and, in turn, more employable and open to new positions within the company. Enhancing this virtuous circle is the ultimate goal of their

training efforts at many different levels through the thousands of training programs they run each year.

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Chapter 4

Performance Measurement and Performance

Appraisal

Q.1 Explain the concept of Performance Measurement & also the challenges associated with

it?

Ans. Performance Measurement can be best understood through considering the definitions of the

words 'performance' and 'measurement' according to the Baldrige Criteria.

Performance refers to output results and their outcomes obtained from processes,

products, and services that permit evaluation and comparison relative to goals, standards, past results, and other organizations. Performance can be expressed in non-financial and financial terms.

Measurement refers to numerical information that quantifies input, output, and performance dimensions of processes, products, services, and the overall Organization (outcomes). Performance measures might be simple (derived from one measurement) or

composite

The challenge for organizations today is how to match and align performance measures with business strategy, structures and corporate culture, the type and number of measures to use, the

balance between the merits and costs of introducing these measures, and how to deploy the measures so that the results are used and acted upon.

Who uses Performance Measurement

All organizations measure performance to some extent. However, there is a large disparity

among organizations in terms of which performance measures are used with many primarily focusing on financial measures. There has however, been a general move away from financial measurement since the early 1980's. This was accelerated in the 1990's and 2000‟s by the

worldwide acceptance of business excellence models and performance measurement frameworks that address all stakeholders' needs.

Human Resource Management 39

Performance measurement is one of the cornerstones of business excellence. Business excellence models encourage the use of performance measures, but in addition and more importantly, they

consider the design of performance measurement systems to ensure that measures are aligned to strategy, and that the system is working effectively in monitoring, communicating, and driving performance.

Common challenges associated with the Performance Measurement approach

The performance measurement revolution has seen a move away from the problems of past measurement systems. Five common features of out-dated performance measurements systems were:

Dominant financial or other backward- looking indicators

Failure to measure all the factors that create value

Little account taken of asset creation and growth

Poor measurement of innovation, learning and change

A concentration on immediate rather than long-term goals

The focus in performance measurement is now on achieving a balanced framework that

addresses the issues described above. Examples of these new frameworks are Kaplan and

Norton‟s Balanced Scorecard, Skandia‟s navigator model and the Performance Prism. Others

recommend that the results sections of business excellence models should be used to generate a

balanced set of performance measures.

There are a number of challenges that are faced when designing an effective Performance

Measurement System, these include the following:

How to measure non-financial performance

What measures to choose and why

How to use them - what to do with the results

Who should be responsible for using the results

How and to whom, to communicate the results

The resources needed to consider the above and design and deploy the measurement system

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There are other major requirements that an Organization needs to consider before an effective performance measurement system can be designed or installed. Apart from lower level measures

that may be vital for the operation of processes, all measures need to be chosen to support the attainment of specific performance or behavior identified by the organization‟s leaders as

important or necessary to work towards the organizational goals. This being the case, there must be clearly defined goals/objectives and strategies chosen to reach them before measures can be chosen to support their attainment. Similarly the key processes, drivers of performance, and the

core competencies required by employees need to be identified before effective performance measurement can be achieved.

Q .2 What you understand by Performance Appraisal? Explain the approaches of

Performance Appraisal?

Ans People differ in their abilities and their aptitudes. There is always some difference between the quality and quantity of the same work on the same job being done by two different people.

Therefore, performance management and performance appraisal is necessary to understand each employee‟s abilities, competencies and relative merit and worth for the organization. Performance appraisal rates the employees in terms of their performance.

Performance appraisals are widely used in the society. The history of performance appraisal can be dated back to the 20th century and then to the second world war when the merit rating was

used for the first time. An employer evaluating their employees is a very old concept. Performance appraisals are an indispensable part of perfo rmance measurement. Performance appraisal is necessary to measure the performance of the employees and the organization to

check the progress towards the desired goals and aims.

Approaches to Performance Development or Methods of Performance Appraisal

Performance appraisal - Traditional approach

Traditionally, performance appraisal has been used as just a method for determining and

justifying the salaries of the employees. Than it began to be used a tool for determining

rewards (a rise in the pay) and punishments (a cut in the pay) for the past performance of the

employees.

This approach was a past oriented approach which focused only on the past performance of

the employees i.e. during a past specified period of time. This approach did not consider the

developmental aspects of the employee performance i.e. his training and development needs or

career developmental possibilities. The primary concern of the traditional approach is to judge

the performance of the organization as a whole by the past performances of its employees.

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Therefore, this approach is also called as the overall approach. In 1950s the performance

appraisal was recognized as a complete system in itself and the Modern Approach to

performance appraisal was developed.

Performance appraisal - Modern approach

The modern approach to performance development has made the performance appraisal process

more formal and structured. Now, the performance appraisal is taken as a tool to identify better

performing employees from others, employees‟ training needs, career development paths,

rewards and bonuses and their promotions to the next levels.

Appraisals have become a continuous and periodic activity in the organizations. The results of

performance appraisals are used to take various other HR decisions like promotions, demotions,

transfers, training and development, reward outcomes. The modern approach to performance

appraisals includes a feedback process that helps to strengthen the relationships between

superiors and subordinates and improve communication throughout the organization.

The modern approach to Performance appraisal is a future oriented approach and is

developmental in nature. This recognizes employees as individuals and focuses on their

development. The various methods and techniques used for Performance appraisal can be

categorized as the following traditional and modern methods

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Traditional Methods of Performance Appraisal:

1. ESSAY APPRAISAL METHOD

This traditional form of appraisal, also known as “Free Form method” involves a description of

Human Resource Management 43

the performance of an employee by his superior. The description is an evaluation of the

performance of any individual based on the facts and often includes examples and evidences to

support the information. A major drawback of the method is the inseparability of the bias of the

evaluator.

2. STRAIGHT RANKING METHOD

This is one of the oldest and simplest techniques of performance appraisal. In this method, the

appraiser ranks the employees from the best to the poorest on the basis of their overall

performance. It is quite useful for a comparative evaluation.

3. PAIRED COMPARISON

A better technique of comparison than the straight ranking method, this method compares each

employee with all others in the group, one at a time. After all the comparisons on the basis of the

overall comparisons, the employees are given the final rankings.

4. CRITICAL INCIDENTS METHODS

In this method of Performance appraisal, the evaluator rates the employee on the basis of critical

events and how the employee behaved during those incidents. It includes both negative and

positive points. The drawback of this method is that the supervisor has to note down the critical

incidents and the employee behavior as and when they occur.

5. FIELD REVIEW

In this method, a senior member of the HR department or a training officer discusses and

interviews the supervisors to evaluate and rate their respective subordinates. A major drawback

of this method is that it is a very time consuming method. But this method helps to reduce the

superiors‟ personal bias.

6. CHECKLIST METHOD

The rater is given a checklist of the descriptions of the behavior of the employees on job. The

checklist contains a list of statements on the basis of which the rater describes the on the job

performance of the employees.

7. GRAPHIC RATING SCALE

In this method, an employee‟s quality and quantity of work is assessed in a graphic scale

indicating different degrees of a particular trait. The factors taken into consideration include both

the personal characteristics and characteristics related to the on-the-job performance of the

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employees. For example a trait like Job Knowledge may be judged on the range of average,

above average, outstanding or unsatisfactory.

8. FORCED DISTRIBUTION

To eliminate the element of bias from the rater‟s ratings, the evaluator is asked to distribute the

employees in some fixed categories of ratings like on a normal distribution curve. The rater

chooses the appropriate fit for the categories on his own discretion.

Modern Appraisal Methods

1. MBO:

The concept of „Management by Objectives‟ (MBO) was first given by Peter Drucker in 1954. It

can be defined as a process whereby the employees and the superiors come together to identify

common goals, the employees set their goals to be achieved, the standards to be taken as the

criteria for measurement of their performance and contribution and deciding the course of action

to be followed.

The essence of MBO is participative goal setting, choosing course of actions and decision

making. An important part of the MBO is the measurement and the comparison of the

employee‟s actual performance with the standards set. Ideally, when employees themselves have

been involved with the goal setting and the choosing the course of action to be followed by them,

they are more likely to fulfill their responsibilities.

THE MBO PROCESS

Human Resource Management 45

Reward Management

Reward management involves the analysis and effective control of employee remuneration and covers salary and all benefits. It assesses the nature and extent of rewards and the way they are delivered as well as considering their effect on both the Organization and staff.

Cornwell consultants take a holistic approach to reward management, treating every element of reward as an investment. We assist organizations to review each part of reward to determine:

Its purpose An organization‟s „return‟ on investment

The most appropriate areas for investment

2. 360 DEGREE APPRAISAL:

360-degree feedback is an evaluation method that incorporates feedback from the worker, his/her peers, superiors, subordinates, and customers. Results of these confidential surveys are tabulated and shared with the worker, usually by a manager. Interpretation of the results, trends and themes are

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discussed as part of the feedback. The primary reason to use this full circle of confidential reviews is to provide the worker with information about his/her performance from multiple perspectives. From this feedback, the worker is able to set goals for self-development which will advance their career and benefit the organization. With 360-degree feedback, the worker is central to the evaluation process and the ultimate goal is to improve individual performance within the organization. Under ideal circumstances, 360-degree feedback is used as an assessment for personal development rather than

evaluation.

3. ASSESSMENT CENTERS:

This technique was first developed in USA and UK in 1943. An assessment center is a central location where managers may come together to have their participation in job related exercises evaluated by trained observers. It is more focused on observation of behaviors

across a series of select exercises or work samples. Assesses are requested to participate in in-basket exercises, work groups, computer simulations, role playing and other s imilar

activities which require same attributes for successful performance in actual job. The characteristics assessed in assessment center can be assertiveness, persuasive ability, communicating ability, planning and organizational ability, self confidence, resistance to

stress, energy level, decision making, sensitivity to feelings, administrative ability, creativity and mental alertness etc.

An assessment centre for Performance appraisal of an employee typically includes:

Social/Informal Events – An assessment centre has a group of participants and also a few assessors which gives a chance to the employees to socialize with a variety of people

and also to share information and know more about the organization.

Human Resource Management 47

Information Sessions – information sessions are also a part of the assessment centers. They provide information to the employees about the organization, their roles and

responsibilities, the activities and the procedures etc. Assignments- assignments in assessment centers include various tests and exercises

which are specially designed to assess the competencies and the potential of the

employees. These include various interviews, psychometric tests, management games etc. all these assignments are focused at the target job.

4. Behaviorally Anchored Rating Scales: statements of effective and ineffective behaviors

determine the points. They are said to be behaviorally anchored. The rater is supposed to say, which behavior describes the employee performance. Advantages – helps overcome rating

errors. Disadvantages – Suffers from distortions inherent in most rating techniques.

Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines

the graphic rating scale and critical incidents method. It consists of predetermined critical

areas of job performance or sets of behavioral statements describing important job

performance qualities as good or bad (for e.g. the qualities like inter-personal relationships,

adaptability and reliability, job knowledge etc). These statements are developed from critical

incidents.

In this method, an employee‟s actual job behavior is judged against the desired behavior by

recording and comparing the behavior with BARS. Developing and practicing BARS

requires expert knowledge.

5. HUMAN RESOURCE ACCOUNTING METHOD

Human resources are valuable assets for every organization. Human resource accounting method tries to find the relative worth of these assets in the terms of money. In this method the performance of the employees is judged in terms of cost and contribution of the

employees. The cost of employees include all the expenses incurred on them like their compensation, recruitment and selection costs, induction and training costs etc whereas their

contribution includes the total value added (in monetary terms). The difference between the cost and the contribution will be the performance of the employees. Ideally, the contr ibution of the employees should be greater than the cost incurred on them.

Case Study: Performance Appraisal

Here is a bizarre case of performance appraisal. A pulp making unit located at Harihar in Karnataka, hired

40 engineers in 1994, as management trainees. The new hires were fresh from, REC, Suratkal, and

other prestigious institut ions. Obvious ly they were toppers in their respective branches and

institutions. The ma na ge me nt of t he pla nt a do pte d a f r e a kis h po l ic y w ith r e ga r d to

pe r f or ma nc e a p p r a i s a l – 1 0 p e r c e n t o f a l l t h e e m p l o y e e s w e r e t o b e

r a t e d b e l o w a v e r a g e . T h e management did not want a ll the employees to be ranked

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high, notwithstanding the ir excellent performance. T h e a xe f e l l o n t h e t r a in e e s . T h e

r a t e r s r a t e d a l l t h e 4 0 t r a in e e s b e lo w a v e r a g e . Humiliated, these 40 put in their

papers even before their training period expired.

Solving Rater‟s Problems The best way to overcome the pr oble ms is t o provide tra ining to t he raters. At Hew lett -Packard, a 2 day tra ining course is or ganized ever y year t o pre pare managers to handle appraisals better. Not that training is a „cure-all‟ for all the ills of appraisal systems. From a pract ical point of view, severa l factors , inc luding the extent which pa y is relate d to perfor mance ratings , union pressure , tur n over rates, t ime constra ints and the need to justify ratings may be more important than training, influencing the ratings they actually give. This means that improving rat ing syste ms involves not just tra ining the rater‟s but remedying outside factors such ass union pressure. In effect, training of raters must help strengthen the factors that tend to improve accuracy of ratings and weaken those that lower the accuracy of the performance measurement.

Human Resource Management 49

Chapter 5

Leadership and Grievance

Q.1 What is leadership?

Ans. Definition: “Leadership is the factor that helps individuals and groups to achieve the goal. It is the

process of influencing and supporting employees or others to work enthusiastically toward achieving the

objectives”.

“Leadership is the process of influencing people to direct their efforts towards the attainment of some

particular goal or goals”.

Q.2 Explain the procedure of grievance?

Ans. A grievance is a wrong or hardship suffered, which is the grounds of a complaint.

Grievance Procedure

Grievance procedure is a formal communication between an employee and the management designed for the settlement of a grievance. The grievance procedures differ from organization to organization.

1. Open door policy 2. Step-ladder policy

Open door policy: Under this policy, the aggrieved employee is free to meet the top executives

of the organization and get his grievances redressed. Such a policy works well only in small

organizations. However, in bigger organizations, top management executives are usually busy

with other concerned matters of the company. Moreover, it is believed that open door

policy is suitable for executives; operational employees may feel shy to go to top management.

Step ladder policy: Under this policy, the aggrieved employee has to follow a step by step

procedure for getting his grievance redressed. In this procedure, whenever an employee is

confronted with a grievance, he presents his problem to his immediate supervisor. If the

employee is not satisfied with superior‟s decision, then he discusses his grievance with the

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departmental head. The departmental head discusses the problem with joint grievance

committees to find a solution. However, if the committee also fails to redress the grievance, then

it may be referred to chief executive. If the chief executive also fails to redress the grievance,

then such a grievance is referred to voluntary arbitration where the award of arbitrator is binding

on both the parties.

GRIEVANCE PROCEDURE IN INDIAN INDUSTRY

The 15th session of Indian Labor Conference held in 1957 emphasized the need of an established

grievance procedure for the country which would be acceptable to unions as well as to

management. In the 16th session of Indian Labor Conference, a model for grievance procedure

was drawn up. This model helps in creation of grievance machinery. According to it, workers‟

representatives are to be elected for a department or their union is to nominate them.

Management has to specify the persons in each department who are to be approached first and

the departmental heads who are supposed to be approached in the second step. The Model

Grievance Procedure specifies the details of all the steps that are to be followed while redressing

grievances. These steps are:

STEP 1: In the first step the grievance is to be submitted to departmental representative, who is a

representative of management. He has to give his answer within 48 hours.

STEP 2: If the departmental representative fails to provide a solution, the aggrieved employee

can take his grievance to head of the department, who has to give his decision within 3 days.

STEP 3: If the aggrieved employee is not satisfied with the decision of departmental head, he

can take the grievance to Grievance Committee. The Grievance Committee makes its

recommendations to the manager within 7 days in the form of a report. The final decision of the

management on the report of Grievance Committee must be communicated to the aggrieved

employee within three days of the receipt of report. An appeal for revision of final decision can

be made by the worker if he is not satisfied with it. The management must communicate its

decision to the worker within 7 days.

STEP 4: If the grievance still remains unsettled, the case may be referred to voluntary

arbitration.

Human Resource Management 51

Case Study: Building a Team (Leadership Training)

Joe is Maintenance Coordinator for a public university. Joe is responsible for all the building maintenance and physical systems on campus. He has a number of departments to accomplish

the assigned workload. He has an Electrical Department, a Plumbing Department, an HVAC Department, a Carpentry Department, and a Painting Department. The workload for his

departments has increased in the last several years as the physical plant continues to age. Joe requested to hire additional workers, but the budget did not allow for it. It became apparent that Joe needed to find more creative ways to better utilize his current resources in order to get more

accomplished.

Joe had observed that his departments were not working together well, or even at all, in some cases. It was common for one department to go into a building, “fix” a problem, and then leave a

mess for the next department coming in behind them to do their part of the work. Workers seemed to think only about maximizing the output of their own department and finishing their

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own work quickly, with little regard for the impact on other departments and the long-term impact on the university.

Q. What could Joe do to better coordinate the work of his departments and make better use of the

resources he has, so that more work can be accomplished with the limited budget? Ans. Joe could:

• Have each department select a team leader to represent them • Call a meeting of all team leaders, share his budget numbers with them, and explain that they

will be expected to work together more closely • Have each team leader identify what he could do to help each of the other departments

• Continue to hold weekly meetings with team leaders so they get to know each other better, to share information, and to hear requests from each department for what they could use from others

• Begin cross-training people in more than one trade in order to promote sharing of available workers between functions when the workload permits this.

Human Resource Management 53

Chapter 6

Discipline

Q .1Explain discipline?

Ans –Discipline is a process of dealing with job related behavior that does not meet expected and communicated performance standards.

Employee discipline is basically adherence to established norms and regulations or conformity with the accepted order of the organization.

Q.2 Explain the purpose of discipline?

Ans. There are various purposes of discipline such as:

To change behavior.

To encourage employees to behave “Sensibly” at work.

To inform employees (preferably in writing) ahead of time, what is and is not the acceptable behavior.

Clarity of expectations.

Better performance.

Not designed to punish or embarrass an employee.

Q.3 Define the Disciplinary Problems?

Ans. The disciplinary problems comprise of:

1. Attendance related issues

2. Performance at work

3. Dishonesty and related problems

4. On the job behavior

5. Off the job behavior

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Q .4 What are the possible reasons for failure of discipline?

Ans. Possible reasons for failure are as below:

A. Lack of direction from the management

B. Communication gap or poor communication

C. Excessive workload

D. Lack of challenge, boredom

E. Inadequate appreciation and recognition of work

F. Anxiety about the future job

Q.5 How to review an Infraction/how to make discipline more effective?

Ans. In order to make discipline more effective following points should keep into consideration:

Did the employee clearly understand the rule or policy that was violated

Was the rule or policy consistently and fairly enforced by management

Did the employee know that violating the rule or policy could lead to discipline

The seriousness of the offence in terms of violating company rules of conduct or company obligations

The duration of service of an employee

The previous good (or bad) work record of the employee

Provocation

Did the employee admit to the misconduct and apologize for his\her behaviour.

Q .6 What should be main points of Good Disciplinary Process?

Ans. A good disciplinary process should include:

A. Should be documented

B. Have lucid rules and regulations

C. Fair

D. Include a system of progressive penalties

Human Resource Management 55

E. Have an appeal process

Q.7 What do you mean by Progressive Discipline? Explain its advantages?

Ans. Progressive discipline is:

• The process features increasingly formal efforts to provide feedback to the employee, so that he or she can correct the problem.

• It intends to assist the employee overcome problems and satisfy job expectations

• Discipline without or very less punishment

Advantages

• No one feels good about being punished

• Forcing rules onto employees would only lead to short term compliance

Q .8 Discuss the process of Discipline.

Ans. The process of discipline includes:

1) Issue an Oral Reminder after informal counselling 2) Issue a Formal Written Reminder

3) Give a one-day “Decision-Making” leave 4) Probation

5) Termination

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The Process

Case Study: No Gambling

A foreman says, “We have rules posted against gambling. Of course, we don‟t enforce them against small bets and there is some card playing for money in the washroom at lunch break. However, we have the rules posted as a standby measure if things get out of hand”.

Questions:

Q.1 Do you agree with this foreman‟s approach?

The Investigation Stage

The Discipline Stage

Human Resource Management 57

Chapter 7

Employee Compensation

Q.1What is Compensation?

Ans. The literal meaning of Compensation is to counter-balance. In other words it is remuneration an employee receives in return for his or her contribution to the organization.

Q. 2 What are the objectives of compensation?

Ans. The main objectives of compensation comprise of:

•To achieve maximum satisfaction to the employee at the least cost to the employer

•Compensation is important for

– morale

– enhancing efficiency

– reduces staff turnover

– attracts best employees

– helps in dealing with unions

Q.3 What are the components of compensation?

Ans.

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/

Q. 4 What is Compensation Plan?

Ans. Compensation plan is to:

1. Develop a program outline

2. Designate an individual to oversee program design

3. Develop a compensation philosophy

4. Conduct a job analysis

5. Job Evaluation

6. Determining Grades

7. Establish grade pricing and salary range

8. Determine an appropriate salary structure.

Components of Compensation

Human Resource Management 59

9. Develop a salary administration policy

10. Obtain approval of the basic salary program

11. Communicate the final program

12. Monitor the program.

Q. 5 Discuss the WIPRO STORY and BIRLA STORY of compensation plan?

Ans. The WIPRO Story:

'We moved to individualized compensation in 1994'„

• We believe the performance of the business and the individual will increasingly dictate

compensation- increases for employees.

• At Wipro, our compensation review for senior management happens in the last quarter of the calendar year.

• We have been moving towards a structure of fixed plus variable compensation.

• At the top management level, the fixed component is 40 per cent; at the senior

management level it is 60 per cent.

• Further, we moved towards individualized compensation way back in 1994.

• We feel that most industries have no option but to do this on the basis of the performance

of the business, the performance of the individual, the criticality of the role, and the market value and potential of the employee.

The BIRLA Story “There's more pay at risk today”

We have always been moderate in our approach to compensation.

We differentiate purely on the basis of performance..

And multiple compensation-and incentive-structures are prevalent.

We are also looking at long-term incentives linked to performance.

At the 'very' senior level, our salaries are comparable to those in the West if you take the cost of living into account. There are variations across sectors.

Percentage- increments are higher at junior levels.

Inflation and life style aspiration are also strong today at the junior levels. All these factors impact compensation strategies.

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Q.6 What is Career Management & also explain its objectives?

Ans. Career management is the lifelong process of investing resources to achieve your career goals. Career management is not a singular event but a continuing process that is a necessity for

adapting to the changing demands of the 21st Century economy. Career Management is the combination of structured planning and the active management choice of one's own professional

career. The outcome of successful career management should include personal fulfillment, work/life balance, goal achievement and financial security.

Objectives of Career Development Systems

Fostering Better Communication in Organization: The main objective of designing a

career development system is to foster better communication within the organization as a whole. It promotes communication at all levels of organizations for example manager and employee and managers and top management. Proper communication is the lifeblood of

any organization and helps in solving several big issues. Assisting with Career Decisions: A career development system provides employees as

well as managers with helpful assistance with career decisions. They get an opportunity to assess their skills and competencies and know their goals and future aspirations. It helps them give a direction so that they can focus on achieving their long term career

goals. Better Use of Employee Skills: A career development system helps organization make

better use of employee skills. Since managers know their skills and competencies and therefore, can put them at a job where they will be able to produce maximum output.

Setting Realistic Goals: Setting realistic goals and expectations is another main

objective of a career development system. It helps both employees and organization to understand what is feasible for them and how they can achieve their goals.

Creating a Pool of Talented Employees: Creating a pool of talented employees is the main objective of organizations. After all, they need to meet their staffing needs in present and future and a career development system helps them fulfill their requirements.

Enhancing the Career Satisfaction: Organizations especially design career development systems for enhancing the career satisfaction of their employees. Since they

have to retain their valuable assets and prepare them for top notch positions in future, they need to understand their career requirements and expectations from their organization.

Feedback: Giving feedback on every step is also required within an organization to measure the success rate of a specific policy implemented and initiatives taken by the

organization. In addition to this, it also helps managers to give feedback for employees‟ performance so that they can understand what is expected of them.

Human Resource Management 61

Q.7 Discuss strategic human resource management (SHRM).

Ans. Strategic HRM gives direction on how to build the foundation for strategic advantage by creating an effective organizational structure and design, culture, employee value proposition,

systems thinking, an appropriate communication strategy and preparing an organization for a changing landscape, which includes downturns and mergers & acquisitions. Sustainability and

corporate social responsibility come within the ambit of this discipline, especially with reference to organizational values and their expression in business decision making. Strategic HRM emphasizes organizational codes of ethics, managing the societal impact of business decisions,

philanthropy and the role of the human resource professional in improving the quality of life of employees, their families and the community at large.

A Strategic Approach to Human Resource Management

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Client Case Study: GMAC – Engaging Employees in Career Planning and Development

The Graduate Management Admissions Council (GMAC) has very high employee retention and well-engaged employees who are committed to GMAC‟s success. After a rapid growth period,

the leadership at GMAC wanted to evaluate their existing career paths, promotions, and development processes. The ultimate goal was to develop programs that would keep employees

engaged and committed to their own careers and to the organization. The Springboard team was tasked with; first of all, identifying which specific initiatives and programs would best keep employees engaged, and what employees wanted from GMAC for their continued career

development. The team conducted an extensive analysis process including a series of focus groups and individual interviews that reached out to almost 75% of all GMAC employees.

Simultaneously, the GMAC internal team conducted a survey to gather additional information. The survey, interviews and focus groups surfaced useful details on the current and desired state around career planning/management, professional development, promotions, and career paths

within GMAC. By analyzing this data, the Springboard team made a series of recommendations for new and enhanced talent management programs. We then developed several critical new

tools for career planning and for employee development, including an Individual Development Plan, a Career Guide for employees to consider their long-term career ambitions, and several new operating procedures, including one to provide more structure for the annual promotions

process. GMAC employees were able to use the tools to take initiative for their own development while experiencing, first hand, GMAC‟s investment in their career growth. Meanwhile GMAC‟s leadership and Human Resources team had consistent processes to help set

expectations regarding career paths and promotions across the organization.

Human Resource Management 63

Key Terms & Terminologies

1. Human Resource Management (HRM): is the process of managing people in

organizations in a structured and thorough manner.

2. Human Resource Planning: a process by which an organization should move from its

current manpower position to its desired manpower position.

3. Human Resource Development: is a framework for the expansion of human capital

within an organization through the development of both the organization and the

individual to achieve performance improvement.

4. Delphi Technique: In this method, the views of different experts related to the industry

are taken into consideration and then a consensus about the Human Resource requirement

is arrived at. Delphi technique is used primarily to assess long-term needs of human

resource.

5. Job Analysis: Job Analysis refers to various methodologies for analyzing the

requirements of a job.

6. Job design: follows job analysis. Job analysis provides job related data as well as the skills and knowledge expected of the incumbent to discharge the job . Job design, then involves conscious effort to organize tasks, duties and responsibilities into a unit of work to

achieve certain objectives.

7. Job Description: A list of job‟s duties, responsibilities, reporting relationships, working

environment and supervisory responsibility.

8. Job specification-A list of job‟s “human requirements,” that is requisite education, skills,

personality and so on.

9. Training: refers to the acquisition of knowledge, skills, and competencies as a

result of the teaching of vocational or practical skills and knowledge that relate to specific useful competencies.

10. Total Quality Management (TQM): total quality management (TQM) is a management

approach to long–term success through customer satisfaction.

11. Performance Measurement: is a process for collecting and reporting information regarding the performance of an individual, group or organizations. It can involve looking at process/strategies in place, as well as whether outcomes are in line with what was intended or

should have been achieved.

12. Performance Appraisal: is the systematic evaluation of the performance of employees

and to understand the abilities of a person for further growth and development.

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13. Leadership: is the process of influencing people to direct their efforts towards the

attainment of some particular goal or goals.

14. Grievance: A grievance is a wrong or hardship suffered, which is the grounds of a

complaint.

15. Discipline: is a process of dealing with job related behavior that does not meet

expected and communicated performance standards.

16. Compensation: it is remuneration that an employee receives in return for his or

her contribution to the organization.

17. Career Management: is the combination of structured planning and the active

management choice of one's own professional career. The outcome of successful career

management should include personal fulfillment, work/life balance, goal achievement and financial security.

18. Strategic Human Resource Management: is the proactive management of people. It requires thinking ahead, and planning ways for a company to better meet the

needs of its employees, and for the employees to better meet the needs of the company.

Human Resource Management 65

Bibliography

S.No. Name of the Book Name of the author

1. Human Resource Management G.S. Sudha

2. Human Resource Management Robert L. Mathis

3. Human Resource Management John H. Jackson

4. Human Resource Planning Deepak Kumar Bhattacharyya

5. Human Resource Planning Dr. Payal Upadhyay & Ms. Shivani Mishra

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M.B.A (Sem.II) (Main & Back) Examination, July-2009

M-401-Human Resource Management

Time: 3 Hours [Total Marks: 70

[Min. Passing Marks: 28

This question paper is divided in two sections.

There are section A and B. Section A contains 6 questions out of which the candidate is required to

attempt any 4 questions. Section B contains short case study / application base.

I question which is compulsory

All questions are carrying equal mar

Use of following supporting material is permitted during examination.

(Mentioned in form No.205)

1.___________Nill______________ 2.____________Nill__________

SECTION- A

Q.1„Managing people is the heart and essence of being a manager.”

Explain this statement and describe the meaning and characteristics of Human Resource

Management.

Ans. Human resource management (HRM or simply HR) is the management of an organization's

workforce, or human resources. It is responsible for the attraction, selection, training, assessment, and

rewarding of employees, while also overseeing organizational leadership and culture, and ensuring

compliance with employment and labor laws. In circumstances where employees desire and are legally

authorized to hold a collective bargaining agreement, HR will typically also serve as the company's

primary liaison with the employees' representatives.

In other words, HRM is the process of managing people in organizations in a structured and

thorough manner.

HRM encompasses the management of people in organizations from a macro perspective i.e. managing

people in the form of a collective relationship between management and employees. This approach

focuses on the objectives and outcomes of the HRM function.

Characteristics of Human Resource Management

1. It is only the functional area which is concerned with the human Resource as well as

functional area such as, Production, Marketing & Finance.

2. It is responsible for encouraging the employees to work hard through proper motivation.

3. Human Resource Management ensure right job through proper selection of employee.

Human Resource Management 67

4. Human Resource Management ensures availability and development of right skills in the organization through efficient Training and Development.

5. Human Resource Management also includes creating job satisfaction among employees

working at different levels and in different departments of the organization.

6. It includes making fair remuneration to the employee‟s i.e. employees working in different department at same level should get same pay.

2. Define Human Resource Planning and give an overview of the process of Human Resource

Planning.

Ans. E.W Vetter viewed human resources planning as “a process by which an organization should

move from its current manpower position to its desired manpower position. Through planning

management strives to have the right number and right kind of people at the right places at the right time,

doing things which result in both the organization and the individual receiving maximum long-run

benefit”.

According to Leon C Megginson human resources planning is an integrated approach to performing the

planning aspects of the personnel function in order to have a sufficient supply of adequately developed

and motivated people to perform the duties and tasks required to meet organizational objectives and

satisfy the individual needs and goals of organizational members.

Process of Human Resource Planning

1. Analyzing the Corporate Level Strategies : – Human Resource Planning should start with

analyzing corporate level strategies which inc lude expansion, diversification, mergers,

acquisitions, reduction in operations, technology to be used, method of production etc. Therefore

Human Resource Planning should begin with analyzing the corporate plans of the organization

before setting out on fulfilling its tasks.

2. Demand forecasting: – Forecasting the overall human resource requirement in accordance with the

organizational plans is one of the key aspects of demand forecasting. Forecasting of quality of

human resources like skills, knowledge, values and capabilities needed in addition to quantity of

human resources is done through the following methods: -

a. Executive or Managerial Judgment: – Here the managers decide the number of employees in

the future. They adopt one of the three approaches mentioned below: -

o Bottom-Up approach: – Here the concerned supervisors send their proposals to the top

officials who compare these with the organizational plans, make necessary adjustments and

finalize them.

o Top-Down approach: – Here the management prepares the requirements and sends the

information downwards to the supervisory –level who finalizes the draft and approves it.

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o Participative Approach: – Here the supervisors and the management sit together and

projections are made after joint consultations.

b. Statistical Techniques: – These methods use statistical methods and mathematical techniques

to forecast and predict the supply and demand of Human Resources in the future.

c. Ratio-Trend analysis: – In this method depending on the past data regarding number of

employees in each department, like production department, sales department, marketing

department and workload level, etc ratios for manpower are estimated. Past values are plotted and

extrapolated to get fairly accurate future projections.

d. Work Study method: – This technique is suitable to study the correlation between volume of

work and labor i.e. demand for human resources is estimated based on the workload. Work study

method is more appropriate for repetitive and manual jobs when it is possible to measure work

and set standards.

e. Delphi Technique: – „Delphi’ Technique is named after the Greek Oracle at the city of Delphi.

In this method, the views of different experts related to the industry are taken into consideration

and then a consensus about the Human Resource requirement is arrived at. Delphi technique is

used primarily to assess long-term needs of human resource.

3. Analyzing Human Resource Supply: – Every organization has two sources of supply of Human

Resources: Internal & External. Internally, human resources can be obtained for certain posts

through promotions and transfers. In order to judge the internal supply of human resources in

future human resource inventory or human resource audit is necessary. Human resource inventory

helps in determining and evaluating the quantity of internal human resources available. Once the

future internal supply is estimated, supply of external human resources is analyzed.

4. Estimating manpower gaps : – Manpower gaps can be identified by comparing demand and

supply forecasts. Such comparison will reveal either deficit or surplus of Human Resources in the

future. Deficit suggests the number of persons to be recruited from outside, whereas surplus

implies redundant employees to be re-deployed or terminated. Employees estimated to be

deficient can be trained while employees with higher, better skills may be given more enriched

jobs.

5. Action Planning: – Once the manpower gaps are identified, plans are prepared to bridge these

gaps. Plans to meet the surplus manpower may be redeployment in other departments and

retrenchment. People may be persuaded to quit voluntarily through a golden handshake. Deficit

can be met through recruitment, selection, transfer and promotion. In view of shortage of certain

skilled employees, the organization has to take care not only of recruitment but also retention of

existing employees. Hence, the organization has to plan for retaining of existing employees.

6. Modify the Organizational plans : – If future supply of human resources form all the external

sources is estimated to be inadequate or less than the requirement, the manpower planner has to

suggest to the management regarding the alterations or modifications in the organizational plans.

Human Resource Management 69

7. Controlling and Review: – After the action plans are implemented, human resource structure and

the processes should be controlled and reviewed with a view to keep them in accordance with

action plans.

3.Explain various methods of training.

Ans. There are two methods of training which are as:

1. On the job methods

2. Off the job methods

I. ON THE JOB METHODS (OJT): -

A.On the job training:

It is the responsibility of supervisors and managers to utilize available resources to train, qualify,

and develop their employees. On-the-job training (OJT) is one of the best training methods because it is planned, organized, and conducted at the employee's worksite. OJT will generally be the primary method used for broadening employee skills and increasing prod uctivity. It is

particularly appropriate for developing proficiency skills unique to an employee's job - especially jobs that are relatively easy to learn and require locally-owned equipment and facilities. To have a successful OJT program, supervisors need to assign a coach to each employee involved in OJT.

It is the responsibility of the coach to plan training carefully and conduct it effectively.

B.Job Instruction Training (JIT):

Job Instruction Training (JIT) is a logical outgrowth of Job Hazard Analysis. One of the first

steps is trainer selection – preferably a supervisor or a skilled person within the department.

Regardless of who is selected, the trainer should:

■ Know the job in question thoroughly

■ Have leadership skills

■ Have a desire to teach others

■ Be friendly and cooperative

■ Have a professional attitude toward the job and other employees.

C.Vestibule Training (Training Centre):

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Towards the end of the 1800s, a method that combined the benefits of the classroom with the benefits of on-the-job training, called vestibule training, became a popular form of training. The

classroom was located as close as conditions allowed to the department for which the workers were being trained. It was furnished with the same machines as used in production. There were

normally six to ten workers per trainer, who were skilled workers or supervisors from the company.

D.Simulation Training:

Technical companies that are required to train employees on dangerous or expensive equipment

are most likely to benefit from simulation-based training. Simulations allow the user to observe the impact of their choices without the outcomes having any impact on the real operation. Trainees can learn how to respond to emergencies, how individual actions and decisions affect

entire processes, and how to operate complex pieces of equipment.

Eg:

Figure 1. Simulated Airplane cockpit.

The airplane cockpit simulation takes on a new approach to simulation training. The user has the opportunity to observe how all the components of the cockpit work together. This approach allows the user to gain a perspective of the interactions and correlations between the numerous

components contained in an airplane cockpit.

Eg:

Human Resource Management 71

1.Demonstration and examples :

This method is a visual display of how something works or how to do something. As an

example, trainer shows the trainees how to perform or how to do the tasks of the job. In order to

be more effective, demonstration method should be should be accompanied by the discussion or

lecture method.

To carry out an effective demonstration, a trainer first prepares the lesson plan by breaking the

task to be performed into smaller modules, easily learned parts. Then, the trainer sequentially

organizes those modules and prepares an explanation for why that part is required. While

performing the demonstration, trainer.

Demonstrates the task by describing how to do, while doing.

Helps the focusing their attention on critical aspects of the task.

Tells the trainees what you will be doing so they understand what you will be showing

them.

Explains why it should be carried out in that way.

After completing the demonstration the trainer provide feedback, both positive and or

negative, give the trainee the opportunity to do the task and describe what he is doing and

why.

2.Apprenticeship :

A major part of training time is spent on the on the job productive work. Each apprenticeship

is given a programme of assignments according to predetermined schedules which provides

for efficient training in trade skills. This method is appropriate for training in crafts, trades,

and technical areas, especially when proficiency in a job is the result of a relatively long

training or apprenticeship period, e.g.; job of a crafts man, a printer, a tool maker, and a

mechanic. Etc.

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II.OFF THE JOB METHODS

1. Lecturers (or class room instructions) :

Lectures are regarding as one of the simplest ways of imparting knowledge to the trainees,

especially when facts, or principles, attitudes, theories and problem solving abilities are to be

taught. Lectures are formal organized talks by the training specialist, the formal superior or

other individual specific topics.

The lecture method can be used for very large groups which are to be trained within a short

time, thus reducing the cost per trainee. Lectures are essential when it is a question of

imparting technical or special information of a complex nature.

2. Conference Method: The conference training method is a good problem-solving approach. A group considers a specific problem or issue and they work to reach agreement on statements or solutions.

Pros: There is a lot of trainee participation. The trainees build consensus and the trainer can use several methods (lecture, panel, and seminar) to keep sessions interesting.

Cons: It can be difficult to control a group. Opinions generated at the conference may differ from the manager‟s ideas, causing conflict.

3. Seminar: Seminars often combine several group methods: lectures, discussions, conferences, demonstrations.

Pros: Group members are involved in the training. The trainer can use many group methods as part of the seminar activity.

Cons: Planning is time-consuming. The trainer must have skill in conducting a seminar. More time is needed to conduct a seminar than is needed for many other methods

4. Role playing: During a role play, the trainees assume roles and act out situations connected to

the learning concepts. It is good for customer service and sales training.

Pros: Trainees can learn possible results of certain behaviors in a classroom situation. They get an opportunity to practice people skills. It is possible to experiment with many different

approaches to a situation without alienating any actual customers.

Cons: A lot of time is spent making a single point. Trainers must be skilled and creative in helping the class learn from the situation. In some role play situations, only a few people get to practice while others watch.

5. T Group:

Human Resource Management 73

T- Group Training is a technique of off the job training methods. It is a group experience

designed to provide maximum opportunity for the individuals to expose their behavior, give and

take feedback and experience new behavior and develop awareness about self and others. The t-

group training is also known as several names such as sensitivity training, action training, human

capacity movement, group dynamics, and awareness expertise and as forth.

6. In-Basket Method:

In-Basket Technique – It provides trainees with a log of written text or information and requests,

such as memos, messages, and reports, which would be handled by manger, engineer, reporting

officer, or administrator.

Procedure of the In-basket Technique

In this technique, trainee is given some information about the role to be played such as,

description, responsibilities, general context about the role. The trainee is then given the log of materials that make up the in-basket and asked to respond

to materials within a particular time period.

After all the trainees complete in-basket, a discussion with the trainer takes place.

In this discussion the trainee describes the justification for the decisions. The trainer then provides feedback, reinforcing decisions made suitably or encouraging the

trainee to increase alternatives for those made unsuitably. This technique focuses on:

Building decision making skills

Assess and develops Knowledge, Skills and Attitudes (KSAs)

Develops of communication and interpersonal skills

Develops procedural knowledge

Develops strategic knowledge

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8. Incident Method:

This method was developed by Paul Pigors. It aims to develop the trainee in the areas of

intellectual ability, practical judgment and social awareness. Under this method each employee developed in a group process .Incidents are prepared on the basis of actual

situations which happened in different organizations. Each Employee in the training group is asked to study the incident and to make short term decisions in the role of a person who has to cope with the incident in the actual situation. Later, the group studies

and discusses the incident and takes decisions relating to incident, based on the group interaction and decisions taken by each member . Thus, this method is similar to a

combination of case method and in basket method.

9. Syndicate Method:

Syndicate is a group of individuals or organizations combined or making a joint effort to undertake some specific duty or carry out specific transactions or negotiations. It is not

actually one group that constitutes the components of syndicate method.

This method is suitable for learning at a higher level. Therefore, this method was experimented, found useful and widely used in teaching- learning situations, especially in top level management training.

14

1. Write short notes on any Two:

(i) 3600 appraisal

Ans. 360-degree feedback is an evaluation method that incorporates feedback from the worker, his/her peers, superiors, subordinates, and customers. Results of these confidential surveys are

Human Resource Management 75

tabulated and shared with the worker, usually by a manager. Interpretation of the results, trends and themes are discussed as part of the feedback. The primary reason to use this full circle of confidential reviews is to provide the worker with information about his/her performance from multiple perspectives. From this feedback, the worker is able to set goals for self-development which will advance their career and benefit the organization. With 360-degree feedback, the worker is central to the evaluation process and the ultimate goal is to improve individual performance within the organization. Under ideal circumstances, 360-degree feedback is used as an assessment for personal

development rather than evaluation.

(ii) HRD (Human Resource Development)

Ans. HRD is a framework for the expansion of human capital within an organization through the

development of both the organization and the individual to achieve performance improvement.

(iii) „Hot stove rule‟ of discipline

Ans. Without the continual support of the subordinates, no manager can get things done. But,

disciplinary action against a delinquent employee is painful and generates resentment on his part.

Hence, a question arises as to how to impose discipline without generating resentment? This is

possible through what Douglas McGregor called the “Red Hot Stove Rule”, which draws an

analogy between touching a hot stove and undergoing discipline. According to the Red Hot

Stove rule, disciplinary action should have the following consequences:

(a) Burns immediately: If disciplinary action is to be taken, it must occur immediately so the individual will understand the reason for it. With the passage of time, people have

the tendency to convince themselves that they are not at fault.

(b) Provides warning: It is very important to provide advance warning that punishment will follow unacceptable behavior. As you move closer to hot stove, you are warned

by its heat that you will be burned if you touch it.

(c) Gives consistent punishment: Disciplinary action should also be consistent in that everyone who performs the same act will be punished accordingly. As with a hot

stove, each person who touches it is burned the same.

(d) Burns impersonally: Disciplinary action should be impersonal. There are no favorites when this approach is followed.

(iv) Job enrichment

Ans. Job enrichment is a type of job redesign intended to reverse the effects of tasks that are

repetitive requiring little autonomy. Some of these effects are boredom, lack of flexibility, and

employee dissatisfaction (Leach & Wall, 2004). The underlying principle is to expand the scope

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of the job with a greater variety of tasks, vertical in nature, that require self-sufficiency. Since the

goal is to give the individual exposure to tasks normally reserved for differently focused or higher

positions, merely adding more of the same responsibilities related to an employee's current

position is not considered job enrichment.

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2. What do you understand by workers participation in management? Explain the ways of workers

participation in management.

Ans. A process by which subordinate employees, either individually or collectively, become involved

in one or more aspects of organizational decision making within the enterprises in which they work.

Workers‟ participation in management is an essential ingredient of Industrial democracy. The concept

of workers‟ participation in management is based on Human Relations approach to Management

which brought about a new set of values to labor and management. Traditionally the concept of

Workers‟ Participation in Management (WPM) refers to participation of non-managerial employees

in the decision-making process of the organization. Workers‟ participation is also known as „labor

participation‟ or „employee participation‟ in management. In Germany it is known as co-

determination while in Yugoslavia it is known as self-management. The International Labor

Organization has been encouraging member nations to promote the scheme of Workers‟ Participation

in Management.

Forms of Participation

Different forms of participation are discussed below:

Collective Bargaining: Collective bargaining results in collective agreements which lay down certain rules and conditions of service in an establishment. Such agreements are normally binding on the parties. Theoretically, collective bargaining is based on the

principle of balance of power, but, in actual practice, each party tries to outbid the other and get maximum advantage by using, if necessary, threats and co unter threats like;

strikes, lockouts and other direct actions. Joint consultation, on the other hand, is a particular technique which is intended to achieve a greater degree of harmony and cooperation by emphasizing matters of common interest. Workers pre fer to use the

instrument of collective bargaining rather than ask for a share in management. Workers‟ participation in the U.S.A has been ensured almost exclusively by means of collective

agreements and their application and interpretation rather than by way of labor representation in management.

Works Councils: These are exclusive bodies of employees, assigned with different functions in the management of an enterprise. In West Germany, the works councils have

various decision-making functions. In some countries, their role is limited only to receiving information about the enterprise. In Yugoslavia, these councils have wider

decision-making powers in an enterprise like; appointment, promotion, salary fixation and also major investment decisions.

Human Resource Management 77

Joint Management Councils and Committees: Mainly these bodies are consultative and advisory, with decision-making being left to the top management. This system of

participation is prevalent in many countries, including Britain and India. As they are consultative and advisory, neither the managements nor the workers take them seriously.

Board Representation: The role of a worker representative in the board of directors is

essentially one of negotiating the worker‟s interest with the other members of the board. At times, this may result in tension and friction inside the board room. The effectiveness of workers‟ representative at the board depend upon his ability to participate in decision-

making, his knowledge of the company affairs, his educational background, his le vel of understanding and also on the number of worker representatives in the Board.

Workers Ownership of Enterprise: Social self-management in Yugoslavia is an example of complete control of management by workers through an elected board and workers council. Even in such a system, there exist two distinct managerial and operative functions with different sets of persons to perform them. Though workers have the option to

influence all the decisions taken at the top level, in actual practice, the board and the top management team assume a fairly independent role in taking major policy decisions for

the enterprises, especially in economic matters.

Levels of Participation

Workers‟ participation is possible at all levels of management; the only difference is that of degree and nature of application. For instance, it may be vigorous at lower level and faint at top

level. Broadly speaking there is following five levels of participation:

1. Information participation: It ensures that employees are able to receive information and express their views pertaining to the matters of general economic importance.

2. Consultative participation: Here works are consulted on the matters of employee welfare

such as work, safety and health. However, final decision always rests at the option of management and employees‟ views are only of advisory nature.

3. Associative participation: It is extension of consultative participation as management here is under moral obligation to accept and implement the unanimous decisions of employees.

4. Administrative participation: It ensure greater share of works in discharge of managerial functions. Here, decision already taken by the management come to employees, preferably with

alternatives for administration and employees have to select the best from those for implementation.

5. Decisive participation: Highest level of participation where decisions are jointly taken on the matters relation to production, welfare etc. is called decisive participation.

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14

3. During one week the workman x manufactured 200 units. He received wages for a guaranteed 44

hours a week at the rate of Rs.1.50/hour. The time allotted to produce 1 unit is 18 minutes.

Calculate his gross wages under each of the methods:

(a) Time rate

(b) Piece rate

(c) Halsey Premium plan

(d) Rowan Premium plan. 14

SECTION-B

Job Analysis at Universal Manufactures

Universal Manufactures, was to recruit a large part of its workforce for its various operations. The

organization was established by Ashutosh Ghosh and Avinash Chopra. While Ghosh was an engineering

graduate, Chopra had a rich experience of handling various operations in different companies. Universal

needed highly talented people at all the levels of the organization structure.

The hired an external human resource consultant, Aparna Rao for this purpose, who suggested a

detailed job analysis in the firm to study manpower requirements “This would not only help select the

right people for the jobs but will also provide important clues to design the compensation package for

each job position in the organization” said Rao.

Rao appointed two-member team to study the important tasks and responsibilities associated with

each job position at universal. They analyzed the qualifications, skills, and abilities that each job holder

should possess so that the company could gain optimum advantage of its manpower deployment. The

team with help of Ghosh (who had a wide range of technical qualification and experience), determined

the Key Result Area (KRAS) for all the jobs in organization. The KRAs helped in determining the

important responsibilities and deliverables of a job holder. This in turn, helped in determining the

competencies required in each job. After a detailed study of the findings of the team, Rao prepared the job

description and job specification for each job activity.

Bases on the levels of the vacant positions in the organizational hierarchy, Rao used various

sources of recruitment like newspaper advertisement, campus recruitment etc. to select people for

different opening. Universal received a good response from qualified people. Rao also used the findings

of the job analysis to design the compensation plan for the various sources of recruitment like newspaper

advertisement, campus recruitment etc. to select people for different opening. Universal received a good

response from qualified people. Rao also used the finding of the job analysis to design the compensation

plan for the various positions in the firm. Rao used the finding of the job analysis for various other

purposes as well.

Thus, universal was benefited by the process of job analysis in more than one

way. Therefore, job analysis continued to remain an on-going process at universal, which had to

constantly keep changing with the changes in the external environment.

Human Resource Management 79

Questions:

(i) Universal introduced a systematic job analysis process on the advice of Aparna Rao. Briefly

describe the various elements and stages involves in the process of job analysis.

(ii) The results of job analysis were used to determine the selection criteria for candidates and also to

design the compensation plan. How important is the job analysis for any organization.

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Multiple Choice Questions

Q.1 is the process of managing people in organizations in a

structured and thorough manner:

(a) Human Resource Planning

(b) Human Resource Management

(c) Human Resource Development

(d) All of the above.

Q.2 is viewed as process by which an organization should move from its current

manpower position to its desired manpower position.

(a) Human Resource Planning

(b) Human Resource Management

(c) Human Resource Development

(d) All of the above.

Q.3 Under this method of demand forecasting, the supervisors and the management sit together and

projections are made after joint consultations. This method is known as:

(a) Top Down Approach

(b) Bottom Up Approach

(c) Managerial Judgment.

(d) Participative Approach

Q.4 is the formal process of identifying the content of a job in terms activities involved

and attributes needed to perform the work and identifies major job requirements.

(a) Job Analysis

(b) Job Design

(c) Job Specification

(d) None of the above.

Human Resource Management 81

Q.5 is a list of job‟s duties, responsibilities, reporting relationships, working

environment and supervisory responsibility.

(a) Job Specification

(b) Job Analysis

(c) Job Description

(d) All of the above.

Q.6 is a list of job‟s “human requirements,” that is requisite education, skills,

personality and so on.

(a) Job Specification

(b) Job Analysis

(c) Job Description

(d) All of the above.

Q.7 In this method, the details of job are obtained by the supervisors who possess extensive knowledge

about a job.

(a) Diary Method

(b) Technical Conference Method

(c) Observation Method

(d) None of the above.

Q.8 The essential characteristics of Total Quality Management (TQM) comprises of :

(a) Creation of common company theme;

(b) Creation of a customer centric mentality;

(c) Improvement becoming part of the job;

(d) All of the above.

Q.9 It is a learning process that involves the acquisition of knowledge, sharpening of skills, concepts, rules, or changing of attitudes and behaviors to enhance the performance of employees.

(a) Development

(b) Coaching

(c) Training

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(d) None of the above.

Q.10 Under this method of performance appraisal a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective

subordinates. This method is called:

(a) Paired Comparison

(b) Field Review

(c) Critical Incident

(d) None of the above.

Q.11 Which of the following is not a type of performance appraisal?

(a) Team Based Appraisal

(b) Appraisal of Managers

(c) Customer Appraisals

(d) 45 Degree Appraisal

Q.12 What is meant by RPO?

(a) Recruitment Process Outsourcing

(b) Retirement Process Outsourcing

(c) Recruitment Process Output

(d) Recruitment Procedure Outsourcing.

Answers: 1(b), 2(a), 3(d), 4(a), 5(c), 6(a), 7(b), 8(d), 9(c), 10(b), 11(d), 12(a).